The Chicago Board of Trade announced that its new futures contract based on the Dow JonesSM U.S. Real Estate IndexSM (DJUSRE) will launch on February 21, 2007. The electronically-traded DJUSRE Index futures contract is designed to allow market participants to capitalize on changes in the real estate sector of the stock market, and better manage commercial real estate exposure.


The new DJUSRE Index futures contract is the result of extensive research by the CBOT to develop an exchange-traded product that best accommodates the needs of institutional real estate investors as well as the commercial real estate market. It will settle to the value of the DJUSRE Index, which is comprised primarily of Real Estate Investment Trusts (REITs). REIT securities often track the underlying U.S. commercial real estate market, with REIT share prices driven in part by lease rates, vacancies, development costs and property transaction values.

The new DJUSRE Index futures contract will trade on the CBOT electronic trading platform from 6:15 p.m. – 4:00 p.m. CT (the following day), Sunday through Friday. The contract, which will be settled in cash, has a value equal to $100 multiplied by the value of the DJUSRE Index. The CBOT intends to create a market maker program for the new DJUSRE Index futures contract to help ensure that a two-sided market will be available to market participants.